web3

Battle of the Brands - Prada Vs Tiffany's in Web3

technology
4 min to read
Yuxiao Zhang

Last week we covered Tiffany & Co.'s NFTiff collection and how much buying power their owners have, but that’s not as interesting alone. What we want to know is how they stack up against another powerhouse luxury brand, Prada Group. Starting in December 2019, the brand launched their first NFT project named Timecapsule https://www.prada.com/prada-crypted/, which can be found on Opensea https://opensea.io/collection/pradatimecapsule. The drop featured 50 items at the time and Prada has continued to drop 50 items batches with their next drop coming November 3rd. To understand which brand is stronger in web3, we explore which has the richest web3 wallets and the most engaged user base.

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Let’s dive into the amount of wealth Prada members have as a group. We use total wallet balance in USD as the measure of buying power, assuming all luxury brands want the wealthiest individuals as part of their brand network. The bar chart comparison on the right highlights a breakdown of wallet balances between the two. Obviously, our winner here is Tiffany & Co. with 9 wallets containing more $100k in value and 22 wallets containing more value than the entire Prada user base.

Next up, user engagement. Whose users are more active in the web3 ecosystem? The thought here is that if you have active buyers in your brand, there’s more potential to convert them into paying customers through higher impressions while marketing. So between Prada and Tiffany & Co. here’s how it shakes out for the average transactions per day of their users. Again, Tiffany's is the winner. It's also interesting to note that NFTiff owner wallets are more than twice as old as Prada's, perhaps their longer tenure and experience go hand in hand with more wealth and activity.

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So it looks like Tiffany's is the clear choice for a winner this week, but let's not be too hasty. If you’re a fashion brand you probably care about just individuals interested in buying fashion related NFTs not just users of web3 products. To measure the interest in fashion, we look at what other fashion collections the consumers have purchased. With Prada, we found that within the top 10 other collections that Prada buyers participate in, there are quite a few fashion related projects:

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Tiffany’s owners actually don’t concentrate heavily into other fashion brands and unfortunately the top other overlapping collections by contract address seem to tie to scam contracts. For example, according to Etherscan, 115 of the NFTiff wallet holders invested in a collection called CryptoPunks.events, which has been tagged as a fake token https://etherscan.io/address/0x8e974a905edae752c5ff9101535799146921d1be. In fact, nearly of the top 10 collections that NFTiff holders also parcitipate in, they've been marked as spam or fake. This being said, there are 98 wallets in the collection that have owned a Bored Ape. This likely signals higher profile individuals in web3 (greater risk for targeted hacking) or maybe those who were really into NFTs vs really into fashion.

So in conclusion, we're going to have to give the edge to Tiffany's as the stronger fashion brand, though this is highly debatable given the fact that Prada's users seem more fashion focused and therefore represent a potentially greater addressable market if they can grow their wealth.

What advice would we give the two brands? Tiffany's, find a way to protect your users and to expand your brands web3 reach within your addressable demographic. Prada, find ways to target higher value wallets to convert them to customers.